The True Leaf Campus in Lumby is an 18,000-square-foot facility designed and licensed to cultivate, process and sell cannabis. (File photo)

North Okanagan cannabis company in bankruptcy

True Leaf Cannabis Inc. owns 18,000-square-foot facility in Lumby

Less than two years after constructing an 18,000-square-foot facility in Lumby, a North Okanagan-based cannabis company now finds itself in the middle of bankruptcy proceedings.

In a Monday, Oct. 5 press release, True Leaf Cannabis Brands Inc. updated shareholders on its recent efforts to exit bankruptcy.

The company’s three subsidiaries — True Leaf, True Leaf Cannabis Inc. and True Leaf Investments Corp. — filed proposals to creditors with the Office of Superintendent in Bankruptcy Canada between Sept. 23 and Oct. 2.

The purpose of the proposals is to allow Canguard Mortgage Investment Corporation to “acquire the assets and the shares of the companies and allow for the companies to emerge from their respective proposal proceedings,” the press release states.

The True Leaf Campus in Lumby was designed to cultivate, process and sell cannabis, and the company obtained Health Canada licences to do so in November 2019.

True Leaf is under a temporary management cease trade order, which it requested from the B.C. Securities Commission after missing the Sept. 14 deadline for filing its audited financial statements. The company says it is working with its auditor to complete its annual filings.

True Leaf’s CEO and CFO are prevented from trading shares in the company for as long as the cease trade order remains in effect.

The company has cited the COVID-19 pandemic and internal reorganizations as reasons for missing the deadline.

“Both events have impacted the company’s ability to complete its audited annual financial statements and has consequently caused a delay in completion of the annual filings,” a Sept. 15 company press release reads.

The company’s efforts to restructure and refinance debt include selling its pet supplement business, True Leaf Pet Inc., in a deal announced in late August.

READ MORE: Cannabis cultivation, extraction facilities planned for Salmon Arm

READ MORE: B.C. unveils new cannabis sales programs to help small, Indigenous growers


Brendan Shykora
Reporter, Vernon Morning Star
Email me at Brendan.Shykora@vernonmorningstar.com
Follow us: Facebook | Twitter

Bankruptcies

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

test tube with the blood test is on the table next to the documents. Positive test for coronavirus covid-19. The concept of fighting a dangerous Chinese disease.
Interior Health records third COVID-19 death

A new community outbreak was reported at Okanagan Men’s Centre in Lake Country

A pair of Oct. 27 vehicle crashes damaged the railing of the RW Bruhn Bridge. (Sicamous RCMP photo)
Railing of Sicamous’ Bruhn Bridge damaged, repairs could take months

Sicamous says sidewalk will be inaccessible to wheelchairs until repairs complete

This Photoshopped version of the crosswalks near the entrance to the Salmon Arm Art Gallery on Hudson Avenue show what is proposed to help create safety for and show inclusivity to the LGBTQ2S+ community. (Salmon Arm Arts Centre image)
Tri-rainbow crosswalk and Progress flag requested to help make Salmon Arm safe

Council will consider budget requests to help make city inclusive to LBGTQ2S+ community

Elections BC has been overwhelmed by request for vote-by-mail packages. (File Photo)
Provincial health officer Dr. Bonnie Henry updates the COVID-19 situation, B.C. legislature, Oct. 26, 2020. (B.C. government)
B.C.’s COVID-19 case count jumps by 287, another senior home outbreak

Two more deaths recorded, community outbreak in Okanagan

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Janet Austin, lieutenant governor of B.C., was presented with the first poppy of the Royal Canadian Legion’s 2020 Poppy Campaign on Wednesday. (Kendra Crighton/News Staff)
PHOTOS: B.C. Lieutenant Governor receives first poppy to kick off 2020 campaign

Janet Austin ‘honour and a privileged’ to receive the poppy

An air tanker drops fire retardant on the Christie Mountain wildfire along Skaha Lake in Penticton, B.C. Thursday, August 20, 2020. (Jonathan Hayward - The Canadian Press file)
North Okanagan firefighters thanked for help in Christie Mountain wildfire

Regional District of Okanagan-Similkameen send thank-you note to Vernon firefighters

In past years, Summerland has launched the festive season with the annual Summerland Festival of Lights. This year, as a result of the COVID-19 pandemic, the festival has been cancelled. (Summerland Review file photo)
Festival of Lights cancelled in Summerland

Annual November event normally launches start of festive season

Lily Rose, a six-year-old Labradoodle from Vernon, has been selected from more than 60,000 entries to star in Bosley’s 2021 fundraising calendar. (Contributed)
Highly photogenic Vernon Labradoodle to grace Canada-wide calendar

Six-year-old Lily Rose was chosen from more than 60,000 entries for the Bosley’s 2021 fundraising calendar

The front door was smashed at Simply Delicious aroud 4 a.m. Wednesday, Oct. 28, 2020, but nothing was stolen. (Cameron Grant photo)
North Okanagan business owners hit second time in three months

Simply Delicious broken into, but nothing was stolen

Revelstoke Fire Rescue Services. (File)
RCMP say fire at Revelstoke apartment suspicious

Second fire in less than a week in Revelstoke contained to one unit

Premier-elect John Horgan and cabinet ministers are sworn in for the first time at Government House in Victoria, July 18, 2017. (Arnold Lim/Black Press)
Pandemic payments have to wait for B.C. vote count, swearing-in

Small businesses advised to apply even if they don’t qualify

Most Read